Truist Financial downgraded Nike to Hold from Buy on Wednesday, citing increased uncertainty around the company’s turnaround strategy following a sharp guidance cut at Dick’s Sporting Goods.
The brokerage lowered Nike’s price target to $42 from $47, while also downgrading Dick’s Sporting Goods to Hold from Buy with a price target reduced to $135 from $270. Analyst Joseph Civello said the firm is moving to the sidelines until clearer visibility emerges on both Nike’s inventory cleanup process and the impact of its 2027 product pipeline.
Truist highlighted that Dick’s Sporting Goods’ outlook revision, driven by weaker footwear trends, signals 'incremental murkiness' around Nike’s progress in stabilizing its U.S. wholesale business. The brokerage had previously expressed cautious optimism on Nike, pointing to strong running shoe launches and improving visibility into marketplace inventories after the company’s June 30 earnings call.
Nike management previously flagged challenges with legacy product lines, underperforming second-quarter launches, and a more extensive cleanup effort at Foot Locker than anticipated. Despite these pressures, Nike noted that its U.S. wholesale segment had shown signs of recovery and that Foot Locker had returned to growth for the first time in four years.
Civello emphasized that the sustainability of full-price selling in Nike’s upcoming 2027 pipeline remains a key question, warranting a more cautious stance until further clarity emerges.
